HomeMy WebLinkAboutA003 - Council Action Sumary from March 24, 2009 meeting COUNCIL ACTION SUMMARY
Meeting Date: 3124109
Agenda Item #: 35
SUBJECT: Increase in Water Rates
ACTION TAKEN: Directed staff to develop an ordinance to implement a uniform ten percent
increase in water rates for all blocks.
MOTION BY: Goodman
SECOND BY: Rice
VOTING AYE: Goodman, Mahayni, Popken, Rice
VOTING NAY: None
ABSENT: Doll, Larson
By.
Diane Voss, City Clerk
Copy to: Doug Marek
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Mr. Dunn emphasized that this is the most straightforward option and predictability is an
important issue for customers.
2. Uniform$0.0017/Cubic Food Increase for All Blocks. This option takes the existing ordinance
rates and increases them all by the same dollar amount. The amount of the increase is
determined by taking the designed revenue increase and dividing it by the total consumption.
According to Mr. Dunn, in comparison to Option 1, this option increases the Winter Rate, the
Residential Block 1 Rate, and the Non-Peaking Industrial Rate.
3. Increase All Blocks Except Summer Blocks 2 and 3 by$0.0018/Cubic Foot. This option would
generate the desired ten percent revenue increase in Metered Sales in the Winter Rate, the
Residential Block 1 Rate,the IrrigationBlock 1 Rate,and both Summer Non-Commercial Rates.
It does not make any adjustment to the Block 2 and Block 3 Summer Rates.
Mr. Dunn showed a graph comparing the three options and showed a typical bill(using 600 cf/mo)
under all three options.
A comparison of Ames rates was also taken by staff and presented to the City Council. Mr. Dunn
advised that every two years,the Water and Pollution Control Department conducts a rate survey of
other Iowa communities. He presented the data from the 2007 Survey, which included rates from
21 communities with a population greater than 10,000 that use a similar treatment process as Ames.
Mr. Dunn noted that, for high-consumption residential customers,the Survey results indicated that
Ames charges the highest rate.
Mr.Dunn advised that staff is recommending that a uniform ten percent increase for all rate blocks.
Moved by Goodman, seconded by Rice, directing staff to develop an ordinance to implement a
uniform ten percent increase in water rates for all blocks.
Vote on Motion: 4-0. Motion declared carried unanimously.
Council Member Popken indicated that he would support the motion, but would like to leave the
option open to increase the second block in the future.
COMMENTS:Moved by Popken,seconded by Goodman,to refer to staff the letter from the Hunziker
Youth Sports Complex regarding the placement of a sign denoting the entrance to the Complex.
Vote on Motion: 4-0. Motion declared carried unanimously.
CLOSED SESSION:Moved by Goodman,seconded by Rice,to hold a Closed Session as provided by
Section 21.5(1)c, Code of Iowa, to discuss strategy with counsel on pending litigation.
Roll Call Vote: 4-0. Motion declared carried unanimously.
REGULAR SESSION: Moved by Goodman, seconded by Popken, to reconvene in Regular Session.
Vote on Motion: 4-0. Motion declared carried unanimously.
ADJOURNMENT: Moved by Goodman, seconded by Mahayni, to adjourn the meeting at 8:52 p.m.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
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